Former Construction Site Manager Pleads Guilty to Role in Kickback Scheme

United States Attorney John E. Murphy announced that in Midland, 46-year-old Carl James Woodruff, former onsite construction manager for the Midland-based architecture and engineering firm of Grimes and Associates (Grimes), pleaded guilty to federal charges in connection with a mail fraud scheme involving more than $200,000 in kickbacks from subcontractors.

Appearing before United States Magistrate Judge David Counts this morning, Woodruff pleaded guilty to two counts of mail fraud and one count of money laundering. By pleading guilty, Woodruff admitted that from the Spring of 2009 until February 2010, he committed mail fraud and denied Grimes and two Texas school districts honest services by accepting kickbacks while overseeing construction projects, namely the construction of a new high school gymnasium for the Grady Independent School District and renovations of various school buildings for the Reagan County Independent School District. Woodruff further admitted that he falsely and materially represented to the school districts that all expenses set forth in the invoices were reasonable and necessary for the completion of the projects, when in fact they were purposely inflated to provide funds to the subcontractors adequate to cover the planned kickbacks to himself. Woodruff also admitted to using the kickbacks to purchase a new home as well as to cover the expenses for carpentry and excavation work at his new residence.

Woodruff, who is on bond pending sentencing, faces up to 20 years in federal prison per count. No sentencing date has been scheduled.

This investigation was conducted by agents from the Federal Bureau of Investigation. Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.